I just got my new T-Bird, they sure made money on me.
Ford Returns to Profitability
By ED GARSTEN 07/17/2002 09:55:05 EST
BIRMINGHAM, Mich. (AP) - Ford Motor Co. reported a profit of $570 million in the second quarter, breaking a string of four consecutive losing quarters. The results beat Wall Street expectations.
The world's second biggest automaker said Wednesday its profit amounted to 29 cents a share for the April-June period in contrast to a loss of $752 million, or 42 cents a share, a year ago.
The latest results include a $41 million charge for projected costs of mandated vehicle recycling in Europe and a $1 million benefit related to a change in accounting standards.
Excluding the special items, Ford earned $610 million, or 31 cents per share, for the latest quarter.
The consensus forecast of analysts surveyed by Thomson Financial/First Call was that Ford would earn 26 cents per share, excluding special items.
In morning trading on the New York Stock Exchange, Ford shareswere up 20 cents at $12.70.
Second-quarter revenue was $42.3 billion, equal to last year.
The company attributed the return to profitability in part on strong vehicle sales industrywide, increased production, the launch of the new Ford Expedition and Lincoln Navigator, and a 0.6 percent increase in market share from the first quarter.
Ford's market share still is 1.9 percent below the second quarter of 2001, the company said.
"We continue to expect a modest profit for the full year, but those results are still unacceptable," chief financial officer Allan Gilmour said in a statement.
The Dearborn-based automaker said it expects a small loss in the third quarter. Ford released its earnings at the Townsend Hotel in this Detroit suburb.
Ford's worldwide automotive operations earned $205 million in the second quarter, including a $45 million profit in North America. Last year, Ford's worldwide automotive operations lost $1 billion during the second quarter.
Ford Credit, the automaker's financial unit, posted its second straight improvement, reporting a $343 million profit. During the second quarter of 2001, Ford Credit earned $399 million.
For the first six months of the year, Ford lost $524 million, or 29 cents a share, in contrast to a profit of $307 million, or 16 cents per share, a year earlier. Revenue slipped to $82.2 billion from $84.8 billion a year ago.
The automaker is in the midst of a restructuring plan announced in January that calls for closing at least five plants and reducing its work force by 35,000 employees.
Also on Wednesday, Ford reported it would have to take "additional actions" in the second half of the year and that it was on track to reduce $2 billion in costs this year although a progress in reducing material costs by $3 billion was "slower than planned."
The reduction of 5,000 salaried positions that began last fall will be completed in August, the company said.
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